From Nasdaq Corporation: 2024-08-04 22:16:29

Corning (NYSE: GLW) reported Q2 results with revenue of $3.6 billion and adjusted earnings of $0.47 per share, meeting street estimates. Stock performance has been lackluster, but there is room for growth. The company expects Q3 core sales of $3.7 billion and adjusted EPS of $0.50-$0.54, slightly below expectations.

Despite underperforming the S&P 500 in recent years, Corning’s stock has potential for growth. The Trefis High Quality Portfolio has outperformed the S&P each year since 2016. Corning’s valuation is estimated at $44 per share, reflecting a 10% upside. The company expects strong demand for optical connectivity products to drive future growth.

Corning’s Q2 revenue was $3.25 billion on a GAAP basis, up 0.2% y-o-y, with core sales at $3.6 billion, up 4%. Display technologies and optical communications drove sales growth, while other segments like specialty materials and life sciences also saw increases. Adjusted EPS was $0.47, up from $0.45 in the prior-year quarter.

AI-related connectivity solutions boosted optical communication sales for Corning in Q2. The company’s adjusted operating margin contracted slightly y-o-y to 17.4%. Q3 guidance fell short of street expectations with core sales of $3.7 billion and adjusted EPS of $0.50-$0.54. Demand for fiber optics is expected to rise as data processing for AI systems increases.

Corning’s stock has potential for growth, but it’s crucial to compare how its peers are performing. Returns for GLW in 2024 so far are 33%, outpacing the S&P 500 at 15%. Consider comparing companies across industries for valuable insights. Invest with Trefis for market-beating portfolios and access to price estimates.



Read more at Nasdaq Corporation: What’s Next For Corning Stock After Downbeat Q3 Guidance?